Flood Insurance ?

[bigdog]

Does any Forum member have any experience about 'flood insurance'.

I have entered into a purchase agreement for a condo located at Lake Winnie. After spending countless hours providing my mortgage lender with every piece of information about myself since birth, they are now telling me that the property has been determined to be in a FEMA determined 'flood zone'. Supposedly, there is a 1% chance to experience a flood in the property area, within a 100 yr period ! I could possibly see if the condo maybe was waterfront, but the condo location is about 1/4 mile away from the water, sitting in an area that is nice and dry Do you believe this ! Your Federal tax dollars at waste.

As a stipulation to secure the mortgage, my bank is telling me I need to purchase 'flood insurance', otherwise 'no loan' ! This would be an annual insurance premium, for the term of the mortgage, 30 years ! They are nuts !
Is this a common requirement for most banks and/or mortgage companies,
or did I just pick a lucky one out of the bunch! FYI, The Bank is one of the largest banks in the country.

The property is located in a land-lock area. Located about 1/4 mile from the Lake. The condo complex does not have 'flood insurance' to cover 'any' units,
only the Master Insurance policy coverage.

I would think if the property area was considered in a FEMA flood-zone,
the entire complex would have to be covered, as part of a master insurance plan to cover all owners? Not the case! They have none !

Anyone ever have to deal with 'flood insurance' before with your mortgage lender ? What type of annual premiums are we talking about here ?

Any information will be greatly appreciated !

Bigdog